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States can cut taxes: Federal funds no longer restricted for tax revenue offsets

This bill aims to remove a restriction that prevented U.S. states and territories from using federal aid funds to offset tax revenue reductions. This change gives state governments more flexibility in their tax policies, potentially leading to lower taxes for citizens or businesses. Importantly, the funds still cannot be used to deposit into pension funds.
Key points
States and territories can now cut taxes without losing federal pandemic relief funds.
The requirement to report changes in state tax revenue sources has been removed, simplifying procedures.
Federal funds still cannot be used for pension fund deposits.
article Official text account_balance Process page
Expired
Citizen Poll
No votes cast
Additional Information
Print number: 117_HR_2002
Sponsor: Rep. Bishop, Dan [R-NC-9]
Process start date: 2021-03-18
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Let States Cut Taxes Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_HR_2002.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2021-03-18.

What are the main provisions?

Key points include:

  • States and territories can now cut taxes without losing federal pandemic relief funds.
  • The requirement to report changes in state tax revenue sources has been removed, simplifying procedures.
  • Federal funds still cannot be used for pension fund deposits.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Rep. Bishop, Dan [R-NC-9].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on Oversight and Reform.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-27.

CATEGORIES

Taxes Economy Local Government